Assignment1 Group D - Assignment 1 | Managerial...

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Assignment 1 | Managerial Accounting (MANACG15-1) GMP 15-16 Anju Babu [G15068] Debirupa Chakraborty [G15077] Govind P. Neelakantan [G15080] Hindol Sen[G15083] Pankaj Kr. Goenka [G15096] Prashant Singh [G15100] By
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1 TABLE OF CONTENTS Sl. No Topic Page No 1 Work Plan 2 2 Industry and Company(s) Selection 3 3 Key Assumptions and Considerations 4 4 Company-wise Source(s) of Revenue 4 5 Comparative analysis of Company-wise Accounting principles for revenue recognition and its impact on profits/ value of assets and liabilities 5 6 Key Learnings from the Assignment 11 7 References 11
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2 1.0 WORK PLAN 2.0 INDUSTRY AND COMPANY SELECTION Industry Selected: Consumer Goods-Electronics In recent years particularly during 2012-2014, Consumer Goods Industry has seen a down slide primarily due to high inflation rate. Many people delayed making big-ticket purchases during 2013, anticipating a change in the government in early 2014 and also expected price cuts and discounts from manufacturers putting them on a tight-rope. Further, the industry faces several revenue risks for product returns due to factors such as short product life cycles, price uncertainties, and demand fluctuations. Research finds that the value relevance of unexpected earnings of sell-in firms (that recognize revenue early) is lower than for sell-through firms. Moreover, South Korean giants Samsung and LG continue to have a dominant share of the Indian consumer electronics market making it extremely difficult for Indian manufactures like Videocon and others to compete. With this background we selected Consumer Good Electronics as our preferred industry for cost accounting study and assignments.
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3 Selection of Companies a. Sector companies are identified as categorized u nder “Consumer Goods (Electronics)” in moneycontrol.com b. Top 10 companies as per Total Assets (listed in BSE) were selected. Sl.No. Company Name Total Assets (Rs in crore) 1 Videocon Ind 32,914.03 2 Trend Electron 791.43 3 Mirc Electronic 370.88 4 Jindal Photo 337.53 5 BPL 234.77 6 PG Electroplast 183.61 7 Salora Inter 156.49 8 Sharp India 44.26 9 Photoquip India 36.35 10 Choksi Imaging 30.28 11 Scanpoint Geo 27.47 12 Noesis Ind 21.53 13 Phil Corp 1.82 3.0 KEY ASSUMPTIONS AND CONSIDERATIONS A. Latest annual reports of respective companies were referred. B. All factual information as considered in this report is strictly from Annual Report only. C. The analysis and conclusions drawn are based on revenue recognition accounting principles as defined by IFRS and IAS. The theory has not been included as part of this report. D. In case of Videocon, the revenue recognition from their other businesses - Crude Oil, Natural Gas and Power (constituting less than 9% of total revenue) has not been considered as it was not directly comparable to revenue recognition of electronic goods.
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4 4.0 COMPANY-WISE SOURCE(S) OF REVENUE The sources of core revenue / other income are identified from annual report and tabulated below.
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  • Summer '15
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